This discussion group considers the foundations of HR within HR management. Topics to consider include HR roles and competencies, the HR organizational structure, policy creation and management, building and establishing a strategic HR function, etc.

Succession Planning for the Top Leadership Role

Hello,
I work for a management consulting organization. The company has undergone a lot of directional changes in the recent past owinf to which most lines of businesses have been unprofitable this last year and are trying to find their ground.

The Firm's Head is due to retire from services in a few year's time and hence wants to put in place a robust succession plan. Being his HR advisor, I asked him a few questions recently and discovered that he does not see any of his direct subordinates worth his role. In such a situation designing a succession plan is becoming a challenge for me. Though assessments would reveal gaps in leadership skills in this bunch of top managers, these managers have been with the firm long enough to expect a succession to the top role and would not accept an external entity.

I would invite suggestions from the group on how to approach this problem of perceived "inability of subordinates", designing a succession strategy in this background, things that I will need to take care of to reduce undue friction & demotivation. I would love to hear your views.

The opinion that there is no one equipped to take the place of the current Firm Head may be seen to be subjective and may be driven by motives other than finding the right person from within.

In cases such as this, I like to offer an objective solution - such as doing a leadership profile - I use DiSC - eg their Management Profile / 363 / Work of Leaders. This clearly identifies the qualities that are desirable for leaders and sets out priorities for developing those skills even further. Plus, the 363 (like the 360 except with three strategies for the individual) has the advantage of showing which of the possible new leaders has the support of the team.

It may be worth doing this exercise as a clear way of identifying firstly, what's required of a leader and secondly how we can grow our own. Evidence shows that the best leaders come from within the company.

Without knowing too much of the facts, here would be some potential next moves.

Dealing with outgoing CEO:

If the head beleives that no one is able to succeed him, then perhaps a logical next move would be to go to the board (or owners) to seek their opinion on potential successors.

Dealing with the Direct Subordinates:

i guess as of now, if the decision from above from the owners/ board is to minimise damage, then figure out mitigating ways to manage the current set of employees. Expansion of roles, diversification of business units etc. You know the situation best.

Dealing with your Own Career:

The current firm's head is already broaching you to plan for a successor. Ask him why he feels there is such a gap and what can be done to mitigage those gaps. if the gap in his opinion is that its too large, than ask him what roles can be created to ensure continuity and safeguaridng of the current talent. If the talent is someone that can be released, then that is the decision and then the issue for you is to seek a successor for those current subordinates.

Dear Madam,
I think the succession planning should be done well in advance.
No.1It was decided that your Unit Head was going to retire then why didn't you plan before?
No.2 It was the responsibility of concerned Unit Head also to prepare the next layer for future assignments; he can not say that he doesn't see anyone as his worthy for that designation. It may be the extreme self esteem due to which he finds nobody worthy for that.
Solution:- Simply talk to the senior most authorities to brainstorm the situation and for future keep your analysis ready well in advance because evaluation of employees is a continuous process.
Thanks and Regards!
Vilom Mane

Dear Anuradha,
Better late than never.It seems that the last-moment planning is just for the sake of it rather than intentionally plan succession. As you mentioned that The company has undergone a lot of directional changes in the recent past owing to which most lines of businesses have been unprofitable this last year and are trying to find their ground.
It sounds as if the leadership role has been missing throughout to stand & dialogue with the concerned stakeholders in justifying & Defending the internal dynamics of the firm. Given the constraints, I would suggest that you first try to understand the true perspectives/ motives of Firm's Head as you are working directly with him. Try to identify & recognize his interests/ priorities & personal style of leadership. You will have to convince him in a highly tactful but assertive manner that by leaving behind a successor will add to his own repute & legacy as he has been leading the firm for a long time. If not done appropriately, it can give a bad name to him forever..& who wants to be remembered as a bad guy.

You mentioned that the Firm's Head will retire in a few years time. Few years meaning 1-3 years, 1-5 years which you did not exactly specify. However being said in a few years time, then it is not too late to put in a succession plan. If your organization has establish & implement the performance management exercise hence KPI, training & development exercise and the likes of other HR functions, putting in place the 9-box, then the succession plan can be easily established & implemented. As a HR advisor, I'm very sure that you have access to knowledge and experiences. And I do agree with Vilom Mane's inputs.
Thanks & regards,
Zurinah Zakariah

Here's what I have done in situations where succession planning has been neglected. For me this is about introducing succession planning to the organisation and establishing the role of management in it. It is also about establishing that succession is about positive change not continuity.

1. First contract and agree the process, roles and timelines for doing this piece of work with the CEO. It is important that you work together and that it is not your job alone. I actually don't agree that this is last minute - a few years should be plenty of time if it is prioritised.

3. Agree the success criteria for the process and the end goal. e.g. A new CEO who has the skills to drive the business through the next phase of change and achieve $,%, targets etc.

Communicate all this to the team so they have a chance to start adjusting to the new world. Take the opportunity to establish succession planning as an annual process reach down into the layers of the org.

4. Specify the leadership skills, capability and experiences this person will have. There are plenty of models you can use but you will need to do this with the CEO and be honest that you are going to need to avoid trying to clone the current CEO. Make sure this question is asked and answered "Will what made us successful in the past, make us successful in the future?". It is important that the organisation is right-shaped.

5. Objectively evaluate the internal candidates against the skills and capabilities, and the optional org models. Include them in the process and give them clear developmental feedback they can act on and make their career choices.

If they do not meet the requirements, then go external. (You might need to start this in parallel).

Hi Seema,
Happy to share more on DiSC. Can I send attachments on this medium?
I have attached an overview but just in case it is not able to be read, I have included more information here.

? The foundation of DiSC? was first described by William Moulton Marston in his 1928 book Emotions of Normal People. Marston identified what he called four "primary emotions" and
associated behavioural responses, which today we know as Dominance (D), Influence (i) Steadiness (S), and Conscientiousness (C). Marston didn't use his theory to label individuals
as a specific "type." But he did believe that each person projects a greater intensity and frequency of the behaviours of one or two of the styles.
? Over the years, the DiSC circumplex has been evolved to show the various traits that are more natural to each of the main behavioural styles. For example, D relates to direct, results-orientated, Firm and strong willed; S relates to even-tempered, patient, humble, tactful, with each of us being a mixture of all four styles to varying degrees. This is a personal understanding.
? DiSC then helps us to build more effective relationships with others by first understanding ourselves and our own priorities.
? Leadership was examined to determine the traits that an effective leader must have and this too relates to the DiSC circumplex.
? The Work of Leaders circumplex identifies the leadership priorities of the styles. It looks at the one-to-many relationship. D has the natural priorities of Resolute, commanding and Pioneering; S has the natural priorities Humble, Inclusive and Affirming. Again, we are a mixture and may use other traits as we work.
? Then the report identifies how well the individual performs the tasks of a leader - Vision; building alignment to the vision; and the execution or bringing the vision to life.
? We identify leadership strengths and the areas that are challenging and provides strategies to help improve those areas.
? Work of Leaders focuses on understanding how your tendencies influence your effectiveness in specific leadership situation.
? 363 report uses peer scores to see how closely the individual is behaving the way they think - and seeing how others see and relate to them. Again, it helps identify areas of strength and improvement
? The Work of Leaders is probably more useful here as an independent means to assess how well individuals fit to the research on leadership qualities and to identify the kind of leader that you need or want for your organisation.
? I am an accredited facilitator of DiSC and am happy to travel (I know, that may not be the easiest way!) Please have a look at the website www.everythingdisc.com

Thanks Pamela for your succinct outline of DISC.
Just wanted to reinforce for Seema that it is easy to administer and can have very positive results when the process is facilitated by a prepared professional.
A practical tool.
Thanks,
Maurizio

This is the tendency of maximum CEOs they dont want to develop
subordination as they feel in secure about their own position. In that Connection as HR
you have to advise him to delegate his responsibilities to next line and
monitor. This will make him free and then he himself will choose the right succession
among the individuals. I think this should be a good plan

Dear Seema,
Thank you for your views. It is very valuable. While the dialogues with the Head have resulted in positive moves, I have also tried to put in an assessment process to validate his views of his subordinates. Though a daunting task, I now need to find ways of communicating the Head's expectations of his subordinates to his next in line. Individual leadership styles do not seem to match hence there is unfulfilled expectations of leadership which as HR representative, I am expected to fill. Wish me Luck!